The firm’s model matches borrowers with local lenders to boost the local economy.
P2P lender Folk2Folk has reached the milestone of issuing £250m in loans to UK-based SMEs. Since its launch in 2013, Folk2Folk has become the third largest P2P business lender in the UK, according to AltFi Data. It has lent over £70m (27 per cent of its cumulative total) in the last 12 months.
The firm has seen an increase in the size of its average investment. The average lender now invests over £275,000 and receives 6.5 per cent in monthly interest.
Folk2Folk’s model, named the “local lending movement”, focuses on growing local communities and economies. The movement pairs local lenders with local businesses and provides jobs for the surrounding communities, using a branch-based model for support.
Giles Cross, Folk2Folk CEO, said: “Reaching the £250 million milestone highlights the important role FOLK2FOLK plays in providing a lifeline to many SME businesses. The Local Lending Movement can transform local communities by creating new jobs and revenue opportunities for rural and local UK businesses. Coupled with this, our inflation-beating interest rate is helping to bolster our Lenders’ savings pots by providing an additional source of income.”
The platform’s customers hail from a wide range of industries, including alternative energy, hospitality, and property development.